Leaders Index 4-21-20

The market sold off pretty hard today. After opening lower the major averages spent most of the day working their way lower. All the major averages finished at or very near their intraday trading lows, showing a lack of support. The losses were pretty evenly divided with the Nasd averages a little worse off. The COMPQ and the NDX fell 3.45% and 3.71% respectively. The SPX lost 3.07%. Volume was really close to yesterday’s levels. According to Esignal volume was lower across the board. It declined 1.99% on the New York and .48% on the Nasd. These levels are close enough that other data feeds could have different results. There was no distribution according to Esignal’s figures, but I will let IBD make the final call on that. Leading stocks were hit as well with the leaders index off by 3.86% on the day, about in line with the overall market. The index closed low in its trading range on higher and about above average volume. This shows some heavier selling in quality growth stocks. The index traded below but by the end of the day held its short term 9dma. The turmoil in the oil and energy markets continued today and it got much of the blame for today’s weakness. The losses were significant and some important support was broken. The SPX fell further below its 50dma and the COMPQ lost both its 50dma and its 200dma. The NDX is holding its 50dma. Today’s action was not encouraging. If we get much more weakness from here it will begin to look like the market is rolling over and may go back and retest the recent lows of this downturn. If the energy market calm down maybe we can continue the current rally. The next few days will tell a lot. Jerry